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Chapter 6 SWOT analysis

Chapter 6 SWOT analysis

Strengths ThyssenKrupp Technologies is a leading player in the powertrain components and systems business. The Components Technology is among the world's leading independent manufacturers of gray and ductile castings. Annually over 50 million cars and commercial vehicle are fitted with brake and drum castings. Furthermore Components Technology develops and manufactures steering shafts, steering columns and steering gears for leading OEMs worldwide. ThyssenKrupp Technologies derives synergies from its parent companys strong research and development base. By leveraging its parent companys technical know-how, ThyssenKrupp Technologies has earned a reputation for developing innovative products. Weaknesses ThyssenKrupp Technologies generates more than 50% of its sales from its European operations. Its presence in Asia and Latin America is modest and the market is dominated by local suppliers with strong supply relationships with OEMs. Opportunities The demand in emerging countries continues to grow, especially in China and India which are expected to grow by 10% and 8.5% respectively in 2010. To tap the opportunities in these countries, ThyssenKrupp Technologies has expanded its presence over the past few years through a number of strategic acquisitions. In China, the company acquired a 51% interest in the crankshaft operations of China-based Tianrun in 2006. In 2007, the ThyssenKrupp Technologies segment closed over 15 acquisition deals across all business segments. Some of the recent acquisitions are, A-C Equipment (2006/07, Polysius), Forteq (2007/08, Berco) and Shedden (2007/08, Uhde).

The company expects further opportunities for its automotive components. The growing environmental awareness amongst motorists who attach increasing

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Chapter 6 SWOT analysis

importance to owning vehicles with low CO2 emissions will in future help boost sales of weight-optimized components. Threats Factors such as, increasing competition from other component makers which may lead to pricing pressure and increase in the prices of raw materials such as copper and steel may have a negative impact on the companys profits

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